A weapons producer sells guns to two countries (A and B) that are at war with each other. The guns can be produced at a
Posted: Sun Jul 03, 2022 6:51 am
A weapons producer sells guns to two countries (A and B) that are at war with each other. The guns can be produced at a constant marginal cost of $10. The demand for guns from the two countries can be represented as: QA = 100-2p QB = 80 - 4p The weapons producer is planning to use multi-market (or group) price discrimination. What price will it charge to country A and what quantity will it sell to country A? O PA = 25, QA = 40 O None of the options given. OPA = 40. QA = 30 O PA = 30, QA = 35 O PA = 40, QA = 45